Jewellery shares gain after government fixes GST rate; Titan at new high

Shares of jewellery companies rallied by up to 15% on BSE in early morning trade after the Goods and Services Tax (GST) Council fixes GST rate at 3% for gold, gems and jewellery. At 9:28 am, Titan Company, PC Jeweller, Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), Tara Jewels, Thangamayil Jewellery and Renaissance Jewellery were up more than 2% each, as compared to 0.20% decline in the S&P BSE Sensex. Commodity Trading Tips

“Currently, gold jewellers pay one per cent excise and 1.2% value-added tax (VAT) over and above the 10% customs duty on bullion. This effectively works out to 12.43%. With the introduction of GST at 3% for gold and 18% for making charges, and keeping customs at 10%, the effective rate comes to 15.67%. So, the effective price escalation on gold jewellery comes to 3.24%. This is still a win-win for gold jewellers; they would not have expected anything better than this, particularly after the chief economic advisor's report of Rs 10,800-crore subsidy on gold,” the Business Standard report suggests. Astrology and Numerology Trading Tips